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Customer Loyalty Concepts

Loyal customers directly contribute to the success of a business. Not only do they purchase more goods and services themselves, but they help bring in new customers through word-of-mouth promotion. Here is an explanation of some of the most important customer loyalty concepts.

Frequent Communication Builds Trust
People have a tendency to distrust things that are unfamiliar. Of course, the opposite is true as well – as people come to know something, they become more trusting and willing to interact. From a business standpoint, this means that customer contact should occur frequently, so customers stay familiar with the company and what it has to offer. The communication can take the form of an email campaign, direct mailing, or television commercial. What matters is that customers feel secure that the company remembers them, and values their business.

Providing Exclusive Information Makes Customers Feel Special
Customer loyalty programs should incorporate the idea that people like to be privy to information that others do not have. After all, it feels good to be an insider. Companies should find ways to reward steady customers with information that has value, and is not yet public knowledge. For example, an online shoe retailer could run a sale that is announced on Twitter and nowhere else. Anyone who does not follow the company on Twitter will miss the sale, which is unfortunate. But, those who learn of the sale in this way will appreciate having their loyalty rewarded.

People Appreciate Businesses that Remember what they Like and Don’t Like
Many new cars include a feature that records a driver’s preferred seat position, radio station, mirror angles, etc., and automatically sets the car to those specifications when the driver gets inside. The idea is that people appreciate the convenience of...